Win for Ruto's Housing programme in 2025-26 budget proposal

National Treasury CS John Mbadi and other leaders before the reading of 2025/26 budget.[Boniface Okendo, Standard]

President William Ruto’s Affordable Housing programme is among the key initiatives set to benefit from increased funding in the proposed 2025/26 national budget.

If approved by Parliament, the programme will receive a boost of Sh28 billion, raising its total allocation to Sh120.2 billion, up from Sh92.1 billion in the 2024/25 budget.

Treasury Cabinet Secretary John Mbadi outlined that of the total allocation, Sh91 billion would go towards affordable and social housing, as well as supporting social and physical infrastructure. This marks a notable rise from the Sh67.4 billion allocated to these areas in the 2024/25 Financial Year.

An estimated Sh64.5 billion is earmarked for the construction of affordable housing units, while Sh16.5 billion will support the development of social and physical infrastructure.

An additional Sh10.5 billion will go to the construction of social housing units across the country.

Beyond the core housing plan, Treasury has also proposed Sh13.4 billion to support the Kenya Urban Support Programme and Sh7.2 billion for the Kenya Informal Settlement Improvement Project – Phase II.

Institutional housing is expected to receive Sh3.5 billion, while Sh45 million has been set aside for the construction of new county headquarters.

Agriculture

To continue supporting farmers through input financing, subsidies and extension services, Mbadi proposes Sh47.6 billion allocations, which he says will move the country from food deficit to food surplus, reduce reliance on food imports and revamp export crops.

Key allocations in this budget include Sh10.2 billion National Agricultural Value Chain Development Project (NAVCDP), Sh8.0 billion Fertilizer Subsidy Programme, Sh5.8 billion Food Systems Resilience Project, and Sh5.2 billion for Blue Economy Priority Projects.

Other allocations include Sh3.8 billion Settlement of the Landless, Sh2.3 billion De-risking, Inclusion and Value Enhancement of Pastoral Economies Programme.

Tourism

The tourism, sports, and culture sectors are also poised for increased funding in the coming financial year.

To boost growth in these areas, Mbadi proposed a Sh29.7 billion allocation, an increase from Sh23.7 billion in the current budget.

The funds will be split among various initiatives, with Sh13.5 billion going to sports, Sh8.2 billion to the Tourism Fund, and Sh241 million to the Anti-Doping Agency of Kenya.

MSMEs

In a bid to support entrepreneurship and job creation, the government has also proposed additional funding for Micro, Small, and Medium Enterprises (MSMEs).

The Hustler Fund is set to receive Sh5.3 billion, an increase of Sh5 billion from the previous proposed budget. Similarly, the Youth Enterprise Development Fund will receive Sh500 million, also reflecting a Sh3 million boost.